China tightens supervision over financing guarantee businesses

China has unveiled measures to tighten supervision over financing guarantee institutions to guard against financial risks.

The management of financing guarantee business licenses should be strictly regulated, said a document jointly released by several central departments, including China Banking and Insurance Regulatory Commission and the Ministry of Finance.

Unlicensed financing guarantee institutions should be strictly supervised and their financing guarantee business should be properly ended, said the document.

Car dealers and car sales service providers cannot run automobile consumer loan guarantee businesses without regulatory approval, according to the document.

According to a State Council executive meeting in August chaired by Premier Li Keqiang, China's overall financing interest rates have been stable with slight declines so far this year.

The meeting announced to coordinate the use of different kinds of monetary policy tools and have financing guarantee play a bigger role in reducing the financing costs of the real economy.